Audit committee responsibilities vis‐á‐vis internal audit: how well do Top 40 FTSE/JSElisted companies shape up?

B. Marx (Department of Accountancy, University of Johannesburg)
T. Voogt (Department of Accountancy, University of Johannesburg)

Meditari Accountancy Research

ISSN: 1022-2529

Publication date: 1 April 2010

Abstract

Effectively functioning audit committees have proven to fulfil a vital role in strengthening the role of internal audit. This article presents the results of a literature review that pinpoints six responsibilities that audit committees should perform in relation to internal audit. These responsibilities were tested as part of an empirical study focusing on the 40 largest companies listed on the JSE to determine the extent to which large listed companies in South Africa fulfil and disclose these responsibilities. The study consisted of an analysis of annual reports and a questionnaire administered to the chairs of audit committees. The study returned significant findings, including sound empirical evidence that the audit committees of the largest listed companies in South Africa are executing their responsibilities for internal audit effectively, but are performing more functions and responsibilities than those actually disclosed and reported on. While this apparent deficiency in disclosure may not affect the effective functioning of audit committees, it may influence perceptions about this effectiveness.

Keywords

Citation

Marx, B. and Voogt, T. (2010), "Audit committee responsibilities vis‐á‐vis internal audit: how well do Top 40 FTSE/JSElisted companies shape up?", Meditari Accountancy Research, Vol. 18 No. 1, pp. 17-32. https://doi.org/10.1108/10222529201000002

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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